Viad’s Overall 2015 Q1 Revenues Down 7.4 Percent, Same-show Revenues Up 7.4 Percent
Negative show rotation in the first quarter of 2015 had an impact on Viad’s overall revenues, dipping to $264.4 million, compared with $285.6 million in the first quarter of 2014.
Global Experience Specialists, a division of Viad, also saw first-quarter revenues decrease to $256.9 million, compared with $277.8 million during the same time period last year.
"Both business groups delivered steady progress toward our financial goals for 2015. Results for the quarter were in line with guidance and the underlying businesses performed well, with continued same-show growth in M&E (Marketing and Events - GES) and organic growth in T&R (Travel and Recreation),” said Steve Moster, Viad’s president and CEO.
He added, “Additionally, our recent acquisitions are meeting expectations and resulting in new business wins.”
Even with the overall decrease in revenues, same-show growth saw a big jump of 7.4 percent. “I think that this bodes well for the industry,” Moster said.
He added a number of sectors had experienced increase and that there was continued growth in the number of exhibitors, attendees and net square footage. Base same-show revenue is expected to increase at a mid-single digit rate in the U.S. throughout the year.
For 2015, the acquisitions of onPeak, Blitz Communications and N200 are expected to provide incremental revenue of $45 million to $50 million and incremental adjusted segment EBITDA of $13 million to $14 million, compared with 2014.
“We are continuing to integrate (these businesses) with GES,” Moster said, adding that the goal is to provide a full suite of services for their clients.
The acquisitions have allowed GES’ existing clients to hire on new services, such as Morgan Stanley, who already utilized GES’ registration and measurement services, and now also added AV.
As far as the rest of the year, consolidated revenue is expected to be comparable to 2014 full year revenue, despite negative show rotation of approximately $70 million and unfavorable currency translation of approximately $45 million.
“As we continue to improve the fundamentals of our businesses through our strategic initiatives and operational efficiencies, we are well positioned to deliver enhanced shareholder value and significant growth in 2016 and beyond,” Moster said.
In non-trade show related GES news, the company recently partnered with Twentieth Century Fox Consumer Products (Fox) to develop and tour an exhibition based on James Cameron's “AVATAR”.
The state-of-the-art global touring exhibition, which will kick off in the fall of 2016, is inspired by the creatures and environments of the world of Pandora first introduced in the record-breaking film. Fox and GES are developing the interactive attraction in consultation with James Cameron and Jon Landau’s Lightstorm Entertainment.
“This unprecedented global exhibition will create a truly memorable experience for fans,” said Jeffrey Godsick, president of Twentieth Century Fox Consumer Products. “Bringing the world of Pandora to life and comparing it to the wonders of our own planet, the ‘AVATAR’ exhibition will bring together immersive new storytelling and science in a tangible, engaging forum.”